The slow start to the year and fear of increasing interest rates had many bracing for a decline in the South Australian property market.
However the March quarter median price data, published by propertyDATA.com.au, showed South Australia’s property market displayed more resilience than most other states across Australia which is a positive sign for the industry – but is this likely to continue throughout 2011?
What is happening right now?
According to Petra Sprekos – General Manager of propertyDATA.com.au – metropolitan median house and unit price remained steady in the first quarter of 2011, whilst regional areas showed modest growth.
“Median prices across Adelaide were unaffected in the 1st quarter of 2011, with the median house price remaining at $410,000 and median unit price at $320,000. Regional areas have experienced a slight uplift with the median house price rising by 1.9% over the past 3 months to $270,000. Regional median unit prices rose by 6.5% in the 1st quarter to $181,000. ”
Mrs. Sprekos believes this to be a positive result, stating “The consecutive interest rate rises of 2010 had weighed heavily on markets across Australia, however South Australia was one of the only states to record an increase in median house prices in the first quarter of 2011. This shows that supply and demand factors remained largely in balance over the quarter.”
Although March data indicates market stability, auction clearance results during the second quarter of the year points to the market slowing.
Mrs Sprekos said “With auction clearance rates down and an increase in the number of properties being withdrawn from sale, the market has shifted in favour of buyers. We are therefore anticipating median house prices to dip slightly for the June quarter. Market activity is likely to increase by spring, however we envisage that it will remain a buyers’ market for the remainder of 2011.”